At CES 2026 in Las Vegas, Siemens and Nvidia announced a significant expansion of their partnership. The goal is to create a so-called industrial AI operating system designed to bring artificial intelligence into every phase of the industrial process. This means everything from design and engineering through manufacturing and operations to supply chains. According to Roland Busch, President and CEO of Siemens AG, combining Nvidia with their hardware and software solutions will enable customers to develop products faster using advanced digital twins, adapt manufacturing in real time, and accelerate technologies ranging from chips to entire AI-powered factories.
Jensen Huang, founder and CEO of Nvidia, added that generative AI and accelerated computing have sparked a new industrial revolution. This system is intended to transform digital twins from passive simulations into active intelligence for the physical world. Nvidia will provide AI infrastructure, simulation libraries, models, frameworks, and blueprints, while Siemens will deploy hundreds of industrial AI experts together with its hardware and software. The first fully AI-driven and adaptive manufacturing facilities are expected to be established around the world, with the initial model at the Siemens Electronics Factory in Erlangen, Germany, as early as this year.
AI accelerates the entire manufacturing cycle
The companies plan to jointly develop AI-based solutions covering the entire product and manufacturing lifecycle. This is expected to lead to faster innovation, continuous improvement, and more resilient and sustainable manufacturing. The key is an "AI brain," powered by automation and industrial operations software, combined with Nvidia Omniverse libraries and Nvidia AI infrastructure. This will allow factories to continuously analyze their digital twins, test improvements virtually, and transfer validated insights directly into real-world shop-floor operations.
This approach enables faster and more reliable decision-making from design to deployment, increasing productivity while reducing commissioning time and risks. These capabilities are set to expand into key industries, and some customers, such as Foxconn, HD Hyundai, KION Group, and PepsiCo, are already testing parts of these features. Siemens will also complete GPU acceleration across its entire simulation portfolio and expand support for Nvidia CUDA-X libraries and AI physics models. This will enable customers to run larger and more accurate simulations faster. Building on this, they will move toward generative simulation with Nvidia PhysicsNeMo and open models, creating autonomous digital twins for real-world engineering design and automated optimization.
Advanced chip design and AI factories
The partnership also focuses on semiconductors and AI factories, where the industrial AI operating system concept will be applied. Siemens will integrate Nvidia CUDA-X and PhysicsNeMo libraries and GPU acceleration into its electronic design automation (EDA) portfolio, with an emphasis on verification, layout, and process optimization. This is expected to deliver 2- to 10-fold acceleration in key workflows. In addition, they will add AI-assisted capabilities such as layout guidance, debugging support, and circuit optimization, increasing engineers' productivity while meeting stringent manufacturing requirements. These features shorten design cycles, improve yields, and ensure more reliable results.
Siemens and Nvidia will jointly design a repeatable blueprint for the next generation of AI factories that balances high-density computing requirements for power, cooling, and automation. This blueprint will optimize the entire lifecycle from planning to operation, with an emphasis on speed and efficiency. It combines Nvidia's AI platform roadmap, AI infrastructure expertise, partner ecosystem, and Omniverse simulation libraries with Siemens' strengths in energy infrastructure, electrification, grid integration, automation, and digital twins. The goal is to accelerate deployment, increase energy efficiency, and improve the resilience of industrial AI infrastructure worldwide.
Operational optimization and new technologies at CES 2026
Both companies aim to accelerate their own operations by implementing these technologies in their systems before expanding them across industry. Nvidia will evaluate Siemens' offerings to streamline its operations, while Siemens will analyze its workloads and collaborate with Nvidia to accelerate them and integrate AI into its customer portfolio. In this way, they are creating concrete proof of value and scalability for others.
At CES 2026, Siemens also introduced Digital Twin Composer, software available on the Siemens Xcelerator Marketplace from mid-2026 that combines a comprehensive digital twin, simulations using Nvidia Omniverse libraries, and real-world data in real time. PepsiCo is using this solution to simulate the modernization of its facilities in the US, with plans for global expansion, delivering up to a 20% increase in throughput, faster design cycles, nearly 100% design validation, and a 10 to 15% reduction in capital expenditure by uncovering hidden capacity. Siemens also announced nine new industrial copilots for software such as Teamcenter, Polarion, and Opcenter, which simplify data navigation, automate regulatory compliance, and transform manufacturing processes to reduce costs and improve efficiency.
